UK Budget 2016 - CRC to be scrapped after 2018/19
- CCL to increase in 2019.
Chancellor George Osborne's Spring Budget confirmed that the Carbon Reduction Commitment (CRC) will be scrapped, but only after the current Phase 2 has completed. Beyond this and in 2019, the Climate Change Levy (CCL) will be increased. Despite the carbon reporting & tax regime review, last autumn, there was no announcement about Mandatory Greenhouse Gas (GHG) reporting, though Climate Change Agreements (CCA) tax breaks are to be extended. Offshore wind power renewable energy projects were giving a boost.
CRC scrapped after end Phase 2 (2018-19)
If your business is a participant within Phase 2, you will still need to complete compliance until 2019. The CRC year for 2015/16 ends this month - you still need to submit your report by July and surrender allowances.
More info: carbon Reduction Commitment
Fuel duty still frozen
Despite the low cost of fuel at the pumps, there is no increase in vehicle fuel duty.
CCL increase - less carrot, more stick
No tax incentivises for companies deploying energy savings technologies - we hoped for some revision of Enhanced Capital Allowances to encourage organisations to take on more energy savings opportunities following completion of the Energy Savings Opportunity Scheme (ESOS) Instead the increase in CCL tax will just provide 'stick' rather than 'carrot'. Those businesses with CCAs will have increased CCL tax breaks.
Renewable Energy
£730 million was pledged in new auctions to back renewable energy technologies to apply to up to 4GW offshore wind and other newer technologies, for projects generating power in 2021-2026.
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